08: End of Chapter Problems Assignment for Problem 8-14 (Preferred Stock Valuation) Save Submit Assignment for Grading Questions Check My Work (1 remain eBook Preferred Stock Valuation Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 9% of its $100 par value. Preferred stack of this type currently yields 10%. Assume dividends are paid annually. a. What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent. $ b. Suppose interest rate levels have risen to the point where the preferred stock now yields 15%. What would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent. Check My Work (1 remaining) 0 Icon Key Questions of Save Submit Assignment for Grading Problem 8-14 (Preferred Stock Valuation)